PALM Anounces Earnings & a Offering
SUNNYVALE, Calif.–(BUSINESS WIRE)–Palm, Inc. (NASDAQ: PALM – News) today reported that total revenues in the first quarter of fiscal year 2010, ended Aug. 28, 2009, were $68.0 million. Gross profit was ($2.8) million, and gross margin was (4.1) percent. These results include the effects of subscription accounting applied to Palm webOS products as required by GAAP.(1) In accordance with this methodology, revenues and direct cost of revenues for Palm webOS products (currently Palm® Pre™ smartphone) are deferred and recognized over the product’s estimated economic life.
To facilitate comparisons to Palm’s historical results, Palm has included non-GAAP adjusted measures, which exclude the impact of subscription accounting, stock-based compensation and other items detailed later in this release. The company believes this information will help investors better evaluate its current period performance and trends in its business.
Non-GAAP Adjusted Revenues in the first quarter totaled $360.7 million, non-GAAP Adjusted Gross Profit was $100.6 million and non-GAAP Adjusted Gross Margin was 27.9 percent.
“We’re making significant progress with Palm’s transformation, and our culture of innovation is stronger than ever. We’re launching more great Palm webOS products with more carriers, and turning our sights toward growth,” said Jon Rubinstein, chairman and chief executive officer.
The company shipped a total of 823,000 smartphone units during the quarter, representing a 134 percent increase from the fourth quarter of fiscal year 2009 and a year-over-year decrease of 30 percent. Smartphone sell-through for the quarter was 810,000 units, up 76 percent from the fourth quarter of fiscal year 2009 and down 21 percent year-over-year.
On a GAAP basis, net loss applicable to common stockholders for the first quarter of fiscal year 2010 was $(164.5) million, or $(1.17) per diluted common share. This compares to a net loss applicable to common stockholders for the first quarter of fiscal year 2009 of $(41.9) million, or $(0.39) per diluted common share….
NEW YORK (Reuters) – Discover Financial Services (DFS.N) posted better-than-expected quarterly earnings on Thursday as loan losses grew less than anticipated and the sixth-largest U.S. credit card issuer trimmed costs.
Net income for the fiscal third quarter, ended August 31, was $577.4 million, or $1.07 per share, compared with $180.1 million, or 37 cents per share, a year earlier.
The latest results included a after-tax gain of $287 million related to an antitrust settlement with Visa (V.N) and MasterCard (MA.N).
Excluding the one-time gain, the Riverwoods, Illinois-based company posted a profit of 52 cents per share. On that basis, analysts had expected a loss of 12 cents per share, according to Reuters Estimates.
Discover’s charge-off rate — loans it does not expect to be repaid — climbed to 8.39 percent in the third quarter from 7.79 percent in the second quarter but was well below rates at its bigger rivals.
Discover shares rose 2.93 percent to $15.77 in premarket trading.
NEW YORK (AP) — FedEx Corp. said Thursday its first-quarter earnings fell 53 percent — matching its prediction released last week — and warned its profit will remain weak through at least the end of the year.
But the world’s second largest package delivery company, considered a bellwether of economic health, said it does see signs of improvement in the economy.
The Memphis, Tenn.-based company reported earnings of $181 million, or 58 cents per share, compared with $384 million, or $1.23 per share, a year ago.
Revenue fell 20 percent to about $8 billion.
Analysts predicted profit of 58 cents per share on revenue of $8.24 billion.
The company said its sales are continuing to be hurt by the slow economy, as people ship slower and less often. The quarter was also hurt by lower fuel surcharges — the fees it passes on to customers based on the price of fuel.
But FedEx said it was able to offset some of the shortfall by “vigilantly” cutting costs. Volume in International Priority — its most lucrative segment — was also better than expected.
FedEx Corp. reiterated its profit prediction of 65 to 90 cents per share for the second quarter ending in November. That’s down from $1.23 a year ago.
It also said it will raise express shipping rates by 5.9 percent in January.
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The home decor company lost $15.8 million, or 17 cents per share, for the period ended Aug. 29 compared with a loss of $30.2 million, or 34 cents per share, a year earlier.
Analysts predicted a loss of 22 cents per share, according to a Thomson Reuters poll. Analysts’ estimates generally exclude one-time items.
Operating costs and expenses declined to $302 million from $348.9 million, while inventories were $43 million less than a year ago.
Sales fell 11 percent to $286.7 million from $320.5 million, but beat Wall Street’s estimate of $281.9 million.
Sales at stores open at least a year, known as same-store sales, dropped 7.6 percent in the quarter due to declining traffic.
Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.
Pier 1 had 1,061 North American stores at quarter’s end. It plans to close about 50 stores during the fiscal year, down from its initial estimate of 125 closings. The company has shuttered 31 stores for the year to date and anticipates closing another 19 locations in January and February.
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